Generally, we buy small to medium companies, create synergies between existing investments and partnerships, restructure management teams, cut the fat and then either spin them off or hold for income.

Or if a city passes rent controls saying what you can lease your property for and nerfing your revenues down that LTR goes belly up fast, like what Saint Paul recently did. 

I would push back on rolling guarantee and also have language in their if it is sold / assigned they must receive your approvalYou want strong financial tenants in their not some newbie who overpays and then goes belly up

You know that pigs gets fat while hogs get slaughtered.

I'm not enthralled with this strategy because (1) should tenant go belly up, you may have a lot of trouble re leasing the property without making further modifications (2) one tenant default equals 100% default and (3) credit tenants pay only enough rent for low returns.  

Leave some fat on the numbers and if the appraisal comes in a bit low on the ARV, you still have a good chance of getting the financing.   

@Jimmy Bell I am a realtor here in key west.

@Jimmy Bell is there a department of tourism in Key West where you can find a history of the tax revenue generated?

I think @Nate Bell is pretty correct...you might want to go up to $200 SF based on todays prices....Best case is to have GC run by and throw a number at you, it'll get you in the ballpark

If the CEO says they will have $x of EPS and the profit centers miss some tgts, its not hard to envision a situation where they look to trim costs, risk being an attractive area since humans tend to miss weight fat tailed risk, especially in light of quantifiable certainty. 2.